In the budget of 2016-2017 the Government has introduced the biggest change in the superannuation system since July 2007. It’s important to note that we are facing a Federal Election in a few months and if the current Government is not re-elected then the new Government will more than likely have its own idea regarding superannuation. Also even if the Government is re-elected, some of the announcements have to be legislated and the Government will need the majority in both houses to pass the legislation through and as we have seen in the past, this does not necessarily happen.
Some of the major changes include:
- changes to contributions caps, including the introduction of a lifetime non-concessional cap
- limits to how much can be transferred into pension phase
- removal of work tests for contributions between age 65 and 74
- extending eligibility to claim deductions for personal contributions
- restricting tax concessions associated with transition to retirement pensions.
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Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.